Ethereum’s breach of ascending channel may see consolidation under $175

Ethereum’s price maintained a volatile trajectory over the past few months after repeated price swings in the market. On 25 October, the 2nd largest crypto-asset recorded its most recent price pump, hiking by 16 percent in a single day and recovering most of the losses suffered a couple of weeks prior. At press time, Ethereum continued to consolidate under the $190 range. However, major bearish signs were evident on the chart.

Source: Coinstats

1-day chart

Source: ETH/USD on Trading View

Ethereum’s 1-day chart highlighted that since the month of August, Ethereum’s price had breached two major bullish patterns and it was followed by an identical hike after the depreciation period. From 5 August to 6 September, ETH navigated within the trend lines of a falling wedge and the token’s valuation declined by around 28 percent over a period of 32 days. The bullish breakout saw ETH recover 24 percent of its losses over the last period, but an immediately bearish pullback invalidated its bullish hike.

A similar pattern surfaced back in October, wherein a familiar falling wedge was recorded in the charts. The value depreciated down by 18 percent over 15 days and it was followed by a recovery of 16 percent. It can be observed that both the hike and decline were fairly close in terms of percentage in the previous two patterns.

Source: ETH/USD on Trading View

At press time, Ethereum’s price was navigating within an ascending channel, increasing the possibility of a bearish breakout in the future. The incline in terms of valuation over the pattern was registered to be around 12 percent. If the bearish breakout continues to follow past trends, a drop of around 10 percent in valuation may surface for Ethereum over the next few weeks. Such a substantial drop could see ETH breach the support at $177.45, and a possible consolidation under it may happen.

The MACD line also suggested that a bearish crossover was in the cards for ETH, suggesting that the breakout may occur sooner rather than later.

Ethereum has struggled to maintain a high price valuation lately and recent market trends suggest that its price will continue to struggle for a while.

The post appeared first on AMBCrypto

Share: